Continuously serving Kosciusko County since 1854
ETNA GREEN - Town officials voted Tuesday to put the contractor for its wastewater project on notice and to withhold funds from the next payment to cover any liquidated damages as a result of work not being completed on time.
"The quality of work, though, has been good," said Mark Sullivan of Commonwealth Engineering. "It's just the time frame. They've piddled around and not gotten done."
Sullivan said the date for substantial completion has passed and the date for final completion was Nov. 29. However, billing notices indicate that the new tentative date for completion is Dec. 15.
"It would appear that they're about 30 days behind schedule," Sullivan said. "I propose that the council approve an amendment to the contract and to continue the inspection budget and to tell the contractor he is on notice for damages."
Town attorney Jay Rigdon told the council that the liquidated damages clause provides an artificial number on the town's actual losses. "The town paid for a service to be completed by a specific date and it wasn't done," Rigdon said.
Rigdon also said that claim of liquidated damage must be proved, but the town doesn't have to prove actual damage, which is the amount that must be paid for continuing inspection of the worksite until completion of the project. That budget had been depleted and the town could incur $10,000 to $11,000 in inspection fees before the work is done.
"You can say, 'We wouldn't have to do this if you had been on the ball and got the job done,'" Rigdon said.
Looking at the work, Sullivan said, the job is 75 percent to 80 percent complete, but by dollars, the work is about 60 percent done.
Sullivan said about $500,000 of the $800,000 has been paid thus far on the project. This month's payment of $141,316.31 to HRP Construction was approved, but Sullivan said the town should approve the next payment minus liquidated damages of up to $15,000 ($500 penalty per day for 30 days) as spelled out in the construction contract with the town.
In other business, the council voted to switch insurance carriers for the town.
A proposal from Bliss-McKnight was accepted as presented. The annual premium is $15,700. Ben Baker of Baker-Travino-Brasseur Insurance Co., Bremen, will be the agent for the town.
Prior to the vote, David Blickhahn of Bliss-McKnight told council members that the current coverage provided through Beauchamp-McSpadden had "what I feel are very serious flaws in your coverage."
Blickhahn said the current policy doesn't include intentional acts, fiduciary activity and other coverages provided in the Bliss-McKnight policy. Worker's Compensation, which is a separate policy through Beauchamp-McSpadden, also is included in this policy.
"We are a higher premium, however I feel we cover the holes that I've mentioned," Blickhahn said.
The town was paying $7,482 for its regular policy, plus $3,000 for the Worker's Compensation insurance.
The new policy will take effect immediately.
The Etna Green Town Council meets at 7 p.m. on the second Tuesday of each month in the fire station meeting room. Council members are Eileen Hall, Ruben "R.B." Conley and Jeff Klinefelter.
